To amend the Internal Revenue Code of 1986 to permit expenditures from health savings accounts for gym memberships and costs of home gym equipment, to repeal the requirement that health plan be high deductible, and for other purposes.

I 116TH CONGRESS 2D SESSION H. R. 7242 To amend the Internal Revenue Code of 1986 to permit expenditures from health savings accounts for gym memberships and costs of home gym equipment, to repeal the requirement that health plan be high deductible, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 18, 2020 Mr. CURTIS (for himself and Ms. KENDRA S. HORN of Oklahoma) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to permit expenditures from health savings accounts for gym mem- berships and costs of home gym equipment, to repeal the requirement that health plan be high deductible, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. HEALTH SAVINGS ACCOUNTS. 3 (a) REPEAL OF LIMITATION ON MEDICARE-ELIGIBLE 4 INDIVIDUALS.—Section 223(b) of the Internal Revenue 5 Code of 1986 is amended by striking paragraph (7). 6 (b) QUALIFIED MEDICAL EXPENSES.— 7 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7242.IH H7242 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 7242 IH (1) GYM MEMBERSHIPS AND HOME GYM EQUIP- 1 MENT.—Section 223(d)(2) of the Internal Revenue 2 Code of 1986 is amended by adding at the end the 3 following new subparagraph: 4 ‘‘(E) FITNESS FACILITY MEMBERSHIPS 5 AND HOME GYM EQUIPMENT.— 6 ‘‘(i) IN GENERAL.—Amounts paid for 7 medical care include— 8 ‘‘(I) amounts paid for member- 9 ship at a fitness facility, and 10 ‘‘(II) amounts paid for home gym 11 equipment. 12 ‘‘(ii) LIMITATION.—The amount taken 13 into account under clause (i) for any tax- 14 able year shall not exceed— 15 ‘‘(I) $100 for membership at a 16 fitness facility, and 17 ‘‘(II) $500 for home gym equip- 18 ment. 19 ‘‘(iii) FITNESS FACILITY DEFINED.— 20 The term ‘fitness facility’ means a facil- 21 ity— 22 ‘‘(I) providing instruction in a 23 program of physical exercise, offering 24 facilities for the preservation, mainte- 25 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7242.IH H7242 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 7242 IH nance, encouragement, or development 1 of physical fitness, or serving as the 2 site of such a program of a State or 3 local government, 4 ‘‘(II) which is not a private club 5 owned and operated by its members, 6 ‘‘(III) which does not offer golf, 7 hunting, sailing, or riding facilities, 8 ‘‘(IV) whose health or fitness fa- 9 cility is not incidental to its overall 10 function and purpose, and 11 ‘‘(V) which is fully compliant 12 with the State of jurisdiction and 13 Federal anti-discrimination laws. 14 ‘‘(iv) HOME GYM EQUIPMENT.—The 15 term ‘home gym equipment’ means equip- 16 ment that— 17 ‘‘(I) can be purchased for the 18 preservation, maintenance, encourage- 19 ment, or development of physical fit- 20 ness in an individual’s home resi- 21 dence, and 22 ‘‘(II) is used exclusively at a resi- 23 dence of the individual for the pur- 24 poses of promoting physical exercise.’’. 25 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7242.IH H7242 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 7242 IH (2) DIETARY NUTRITIONAL SUPPLEMENTS.— 1 Section 223(d)(2) of such Code, as amended by 2 paragraph (1), is amended by adding at the end the 3 following: 4 ‘‘(F) DIETARY NUTRITIONAL SUPPLE- 5 MENT.—Amounts paid for a dietary supplement 6 (as defined in section 201(ff) of the Federal 7 Food, Drug, and Cosmetic Act (21 U.S.C. 8 321(ff)) shall be treated as amounts paid for 9 medical care.’’. 10 (c) PREMIUMS FOR CERTAIN EXCHANGE HEALTH 11 PLANS.—Subparagraph (B) of section 223(d)(2) of such 12 Code is amended to read as follows: 13 ‘‘(B) HEALTH INSURANCE MAY NOT BE 14 PURCHASED FROM ACCOUNT.— 15 ‘‘(i) IN GENERAL.—Subparagraph (A) 16 shall not apply to any payment for insur- 17 ance. 18 ‘‘(ii) EXCEPTION RELATING TO PRE- 19 MIUMS FOR CERTAIN EXCHANGE HEALTH 20 PLANS.— 21 ‘‘(I) IN GENERAL.—Clause (i) 22 shall not apply in the case of a tax- 23 payer who, but for the limitation re- 24 lating to household income, would be 25 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7242.IH H7242 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 7242 IH an applicable taxpayer for purposes of 1 the premium assistance credit under 2 section 36B. 3 ‘‘(II) LIMITATION.—The amount 4 taken into account under this clause 5 for any coverage month (as defined in 6 section 36B(c)(2)) may not exceed the 7 amount specified in section 8 36B(b)(2)(A).’’. 9 (d) REPEAL OF REQUIREMENT THAT HEALTH PLAN 10 BE HIGH DEDUCTIBLE.— 11 (1) ELIGIBLE INDIVIDUAL.—Paragraph (1) of 12 section 223(c) of such Code is amended to read as 13 follows: 14 ‘‘(1) ELIGIBLE INDIVIDUAL.— 15 ‘‘(A) IN GENERAL.—The term ‘eligible in- 16 dividual’ means, with respect to any month, any 17 individual if such individual is covered under a 18 health plan as of the first day of such month. 19 ‘‘(B) EXCLUSION OF CERTAIN PLANS.— 20 Such term does not include a health plan if 21 substantially all of its coverage is— 22 ‘‘(i) coverage for any benefit provided 23 by permitted insurance, 24 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7242.IH H7242 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 7242 IH ‘‘(ii) coverage (whether through insur- 1 ance or otherwise) for accidents, disability, 2 dental care, vision care, long-term care, or 3 (in the case of plan years beginning on or 4 before December 31, 2021) telehealth and 5 other remote care, and 6 ‘‘(iii) for taxable years beginning after 7 December 31, 2006, coverage under a 8 health flexible spending arrangement dur- 9 ing any period immediately following the 10 end of a plan year of such arrangement 11 during which unused benefits or contribu- 12 tions remaining at the end of such plan 13 year may be paid or reimbursed to plan 14 participants for qualified benefit expenses 15 incurred during such period if— 16 ‘‘(I) the balance in such arrange- 17 ment at the end of such plan year is 18 zero, or 19 ‘‘(II) the individual is making a 20 qualified HSA distribution (as defined 21 in section 106(e)) in an amount equal 22 to the remaining balance in such ar- 23 rangement as of the end of such plan 24 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7242.IH H7242 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 7242 IH year, in accordance with rules pre- 1 scribed by the Secretary. 2 ‘‘(C) SPECIAL RULE FOR INDIVIDUALS ELI- 3 GIBLE FOR CERTAIN VETERANS BENEFITS.—An 4 individual shall not fail to be treated as an eli- 5 gible individual for any period merely because 6 the individual receives hospital care or medical 7 services under any law administered by the Sec- 8 retary of Veterans Affairs for a service-con- 9 nected disability (within the meaning of section 10 101(16) of title 38, United States Code).’’. 11 (2) DEFINITION.—Section 223(c) of such Code 12 is amended by striking paragraph (2) and redesig- 13 nating paragraphs (3), (4), and (5) as paragraphs 14 (2), (3), and (4), respectively. 15 (e) DEDUCTIBLE AMOUNT; MONTHLY LIMITA- 16 TION.—Section 223(b)(2) of such Code is amended to read 17 as follows: 18 ‘‘(2) MONTHLY LIMITATION.—The monthly lim- 19 itation for any month is 1⁄12 of the deductible 20 amount in effect under section 219(b) for the tax- 21 able year in which the month occurs.’’. 22 (f) SPECIAL RULE RELATING TO DEPENDENTS.— 23 Paragraph (6) of section 223(b) of such Code is amended 24 to read as follows: 25 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7242.IH H7242 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 7242 IH ‘‘(6) SPECIAL RULE RELATING TO DEPEND- 1 ENTS.—A contribution to a health savings account 2 of a dependent of the individual to whom a deduc- 3 tion under section 151(c) is allowable for the taxable 4 year shall be treated as an amount paid to the 5 health savings account of the individual to whom a 6 deduction is allowable under this section.’’. 7 (g) CONFORMING AMENDMENTS.— 8 (1) Section 223(b) of such Code is amended— 9 (A) by striking paragraph (3) (relating to 10 additional contributions for individuals 55 or 11 older); 12 (B) by striking paragraph (5) (relating to 13 special rule for married individuals); 14 (C) in paragraph (8)(A)(ii) by striking 15 ‘‘high deductible’’; and 16 (D) in the heading for paragraph (8)(B) 17 by striking ‘‘HIGH DEDUCTIBLE’’. 18 (2) Section 223(b) of such Code, as amended by 19 paragraph (1) and the preceding subsections of this 20 section, is further amended by redesignating para- 21 graphs (4), (6), and (8), as paragraphs (3), (4), and 22 (5), respectively. 23 (3) Section 224(d)(1)(A)(ii) of such Code is 24 amended by striking ‘‘exceeds the sum of—’’ and all 25 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H7242.IH H7242 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 7242 IH that follows and inserting ‘‘exceeds the dollar 1 amount in effect under subsection (b)(2).’’. 2 (4) Section 223 of such Code is amended by 3 striking subsection (g) and redesignating subsection 4 (h) as subsection (g). 5 (5) Section 223(g)(2) of such Code, as redesig- 6 nated by paragraph (4), is amended by striking 7 ‘‘high deductible’’. 8 (h) EFFECTIVE DATE.—The amendments made by 9 this section shall apply to taxable years beginning after 10 the date of the enactment of this Act. 11 Æ VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6301 E:\BILLS\H7242.IH H7242 kjohnson on DSK79L0C42PROD with BILLS